Amazon is acquiring One Medical for $ 18 per share, a cash deal that values the primary care provider at around $ 3.9 billion, the companies said Thursday.
The deal strengthens Amazon's presence in the healthcare industry, which Neil Lindsay, senior vice president of Amazon Health Services, said was "at the top of the list of experiences to reinvent."
The e-commerce giant hopes to improve the way people book appointments and the experience of being seen by a doctor, Lindsay said in a statement.
"We love to invent things that should be easy and we want to be one of the companies that will dramatically improve the healthcare experience over the next few years," he said.
One Medical, which went public in 2020, operates a network of boutique primary care practices and also offers a range of telemedicine services.
It has grown to oversee 188 medical practices in 25 markets and has 767,000 members, according to the latest quarterly results. One Medical reported a net loss of $ 90.9 million on first quarter revenue of $ 254.1 million.
"There is a huge opportunity to make the healthcare experience more accessible, convenient and even more enjoyable for patients, providers and payers," said Amir Dan Rubin, CEO of One Medical, in a statement.
Once the agreement is finalized, Rubin will continue to lead One Medical.
Shares of 1Life Healthcare, the parent company of One Medical, opened about 66% higher on Thursday, trading just below the purchase price. At the end of Wednesday, prior to the announcement of the deal, 1Life stock was trading at $ 10.18. Amazon shares gained about 1% in early trading Thursday.
Amazon signaled greater interest in healthcare when it bought PillPack for $750 million in 2018 and used the acquisition to launch its own online pharmacy years later. The company has also expanded its telehealth service called Amazon Care and is trying to develop home medical diagnostics.